Constellation to Reduce Investment in Maryland Nuclear Project

1 August 2010 (Last Updated August 1st, 2010 18:30)

Constellation Energy Group (CEG) plans to reduce spending on a new reactor planned for a nuclear power plant in Maryland, US, as it is yet to receive a federal loan guarantee for the project. The firm will slow design and other work on the project by contractors including Areva and Bech

Constellation Energy Group (CEG) plans to reduce spending on a new reactor planned for a nuclear power plant in Maryland, US, as it is yet to receive a federal loan guarantee for the project.

The firm will slow design and other work on the project by contractors including Areva and Bechtel Group, according to the Wall Street Journal.

The Calvert Cliffs Nuclear Power Plant project may be terminated by the end of the year by Constellation and its partner EDF if it doesn't receive a guarantee by then.

Constellation chief executive Mayo Shattuck told the Wall Street Journal that it can't keep going at the current rate without clarity on the loan guarantee.

Gaining government support is a crucial step for power companies looking to build the first new US reactors in a generation, since a federal backstop would give lenders the confidence to finance the lengthy and expensive projects.